CRPC |233 Questions with verified answers
A 25% long-term capital gains rate applies to Ans✓✓✓ unrecaptured Section
1250 income (the portion of the gain from the sale of realty that was attributable
to depreciation, but was not treated as Section 1250 recapture).
A barbell strategy Ans✓✓✓ splits the bond portion of a portfolio between short-
term and long-term bonds. Both ends may then stagger maturities similar to the
ladder strategy. For example, the short-term end may be constructed with bonds
of maturities five years or less and the long-term end may be constructed with
bonds of maturities greater than 10 years.
A bond portfolio strategy that splits the portfolio between short-term and long-
term bonds is Ans✓✓✓ referred to as a barbell strategy.
A cash flow statement shows Ans✓✓✓ a client's net cash flow or deficit over a
period of time usually one year.
A fundamental duty owed to a client is to always look out for what is in the
client's best interest, what fiduciary duty best personifies this? Ans✓✓✓ duty of
loyalty
A lump-sum payment from a profit sharing plan payable upon separation from
service is Ans✓✓✓ eligible for rollover treatment.
A lump-sum payment of the proceeds of a life insurance policy that is made to the
beneficiary upon the insured's death Ans✓✓✓ is generally exempt from income
taxation.
,A maximum rate of 28% applies to Ans✓✓✓ long-term gain on collectibles.
A measurement of total risk is Ans✓✓✓ standard deviation.
A Medicare Part A patient must pay Ans✓✓✓ all costs for a hospital stay beyond
150 days.
A nonperiodic distribution (withdrawal) from an annuity Ans✓✓✓ is not prorated
equally between a tax-free return of principal and a taxable interest payment; it is
first considered a taxable interest payment and then a tax-free return of principal
(LIFO).
a QLAC may Ans✓✓✓ not be suited for those with extremely limited retirement
income resources.
A requirement that the portfolio "maximize return and minimize risk" is Ans✓✓✓
unclear and immeasurable.
A springing durable power of attorney becomes Ans✓✓✓ effective when the
principal becomes incompetent or incapacitated.
A springing durable power of attorney Ans✓✓✓ gives the attorney-in-fact
authority only when the principal becomes incompetent.
A statement of financial position shows Ans✓✓✓ a client's net worth, which is
defined as assets minus liabilities, as of a specific date.
,All tax-exempt interest income is included in Ans✓✓✓ computing the portion of
Social Security benefits that are subject to taxation. A maximum of 85% of the
Social Security benefits are subject to taxation.
Alpha Ans✓✓✓ is not an asset allocation strategy, but a way to measure a
portfolio manager's return relative to the amount of risk that has been taken.
Alpha is another name for the Jensen index and ... Ans✓✓✓ It compares
expected return with the actual return.
Although medical screening might prevent a person with Alzheimer's disease from
purchasing an LTC policy, it cannot prevent Ans✓✓✓ a healthy person from
purchasing an LTC policy in states that have adopted the model regulation (i.e., a
qualified policy).
Amounts distributed from an IRA are t Ans✓✓✓ axed according to the rules that
apply to IRAs, regardless of the type of plan from which the funds may have been
rolled over.
An income tax penalty-free distribution cannot be made from a TSA until the
employee does which of the following? Ans✓✓✓ separates from service after
attaining age 55, becomes disabled or dies
An investment policy provides guidelines that Ans✓✓✓ are standards to be
followed.
, An investor who follows a contrarian strategy Ans✓✓✓ moves against the
majority (e.g., he or she buys stock when everyone else is selling it).
Any person receiving an addition to a qualified retirement plan (employee
contribution, employer contribution, or forfeitures) other than interest and
earnings will Ans✓✓✓ be deemed an active participant.
As an investor, you are optimistic about the near-term prospects of the market.
To enhance portfolio returns you would Ans✓✓✓ choose securities with betas
greater than 1.0. Investing in Treasury bills would reflect a bearish attitude toward
the market.
Asset allocation is the Ans✓✓✓ apportioning of available funds among various
asset classes in a way that attempts to meet a client's goals and reduce market
risk.
Assume a client and investment professional have worked together for several
years. Recently, the client's personal and financial circumstances have changed.
According to the course materials, what is the next asset management step that
the investment professional should take? Ans✓✓✓ gather data
basic provisions of Medicare Part B? Ans✓✓✓ Coverage includes benefits for
physicians' services. Individuals who are eligible for Part A are automatically
eligible for Part B. Participants pay a monthly premium.
Beta is a measure of Ans✓✓✓ only systematic risk.
Beta measures systematic risk only. Ans✓✓✓
A 25% long-term capital gains rate applies to Ans✓✓✓ unrecaptured Section
1250 income (the portion of the gain from the sale of realty that was attributable
to depreciation, but was not treated as Section 1250 recapture).
A barbell strategy Ans✓✓✓ splits the bond portion of a portfolio between short-
term and long-term bonds. Both ends may then stagger maturities similar to the
ladder strategy. For example, the short-term end may be constructed with bonds
of maturities five years or less and the long-term end may be constructed with
bonds of maturities greater than 10 years.
A bond portfolio strategy that splits the portfolio between short-term and long-
term bonds is Ans✓✓✓ referred to as a barbell strategy.
A cash flow statement shows Ans✓✓✓ a client's net cash flow or deficit over a
period of time usually one year.
A fundamental duty owed to a client is to always look out for what is in the
client's best interest, what fiduciary duty best personifies this? Ans✓✓✓ duty of
loyalty
A lump-sum payment from a profit sharing plan payable upon separation from
service is Ans✓✓✓ eligible for rollover treatment.
A lump-sum payment of the proceeds of a life insurance policy that is made to the
beneficiary upon the insured's death Ans✓✓✓ is generally exempt from income
taxation.
,A maximum rate of 28% applies to Ans✓✓✓ long-term gain on collectibles.
A measurement of total risk is Ans✓✓✓ standard deviation.
A Medicare Part A patient must pay Ans✓✓✓ all costs for a hospital stay beyond
150 days.
A nonperiodic distribution (withdrawal) from an annuity Ans✓✓✓ is not prorated
equally between a tax-free return of principal and a taxable interest payment; it is
first considered a taxable interest payment and then a tax-free return of principal
(LIFO).
a QLAC may Ans✓✓✓ not be suited for those with extremely limited retirement
income resources.
A requirement that the portfolio "maximize return and minimize risk" is Ans✓✓✓
unclear and immeasurable.
A springing durable power of attorney becomes Ans✓✓✓ effective when the
principal becomes incompetent or incapacitated.
A springing durable power of attorney Ans✓✓✓ gives the attorney-in-fact
authority only when the principal becomes incompetent.
A statement of financial position shows Ans✓✓✓ a client's net worth, which is
defined as assets minus liabilities, as of a specific date.
,All tax-exempt interest income is included in Ans✓✓✓ computing the portion of
Social Security benefits that are subject to taxation. A maximum of 85% of the
Social Security benefits are subject to taxation.
Alpha Ans✓✓✓ is not an asset allocation strategy, but a way to measure a
portfolio manager's return relative to the amount of risk that has been taken.
Alpha is another name for the Jensen index and ... Ans✓✓✓ It compares
expected return with the actual return.
Although medical screening might prevent a person with Alzheimer's disease from
purchasing an LTC policy, it cannot prevent Ans✓✓✓ a healthy person from
purchasing an LTC policy in states that have adopted the model regulation (i.e., a
qualified policy).
Amounts distributed from an IRA are t Ans✓✓✓ axed according to the rules that
apply to IRAs, regardless of the type of plan from which the funds may have been
rolled over.
An income tax penalty-free distribution cannot be made from a TSA until the
employee does which of the following? Ans✓✓✓ separates from service after
attaining age 55, becomes disabled or dies
An investment policy provides guidelines that Ans✓✓✓ are standards to be
followed.
, An investor who follows a contrarian strategy Ans✓✓✓ moves against the
majority (e.g., he or she buys stock when everyone else is selling it).
Any person receiving an addition to a qualified retirement plan (employee
contribution, employer contribution, or forfeitures) other than interest and
earnings will Ans✓✓✓ be deemed an active participant.
As an investor, you are optimistic about the near-term prospects of the market.
To enhance portfolio returns you would Ans✓✓✓ choose securities with betas
greater than 1.0. Investing in Treasury bills would reflect a bearish attitude toward
the market.
Asset allocation is the Ans✓✓✓ apportioning of available funds among various
asset classes in a way that attempts to meet a client's goals and reduce market
risk.
Assume a client and investment professional have worked together for several
years. Recently, the client's personal and financial circumstances have changed.
According to the course materials, what is the next asset management step that
the investment professional should take? Ans✓✓✓ gather data
basic provisions of Medicare Part B? Ans✓✓✓ Coverage includes benefits for
physicians' services. Individuals who are eligible for Part A are automatically
eligible for Part B. Participants pay a monthly premium.
Beta is a measure of Ans✓✓✓ only systematic risk.
Beta measures systematic risk only. Ans✓✓✓
